Florida can be a hard state to leave. It has lots of sunshine, warm weather, and no state taxes on income and many retirement income sources. But it also has hurricanes, alligators, and humidity. No matter your reason for leaving, you’ll want to do some planning before you move out of Florida. Here are financial considerations to start your journey.

Where Do You Want to Live?

Many Floridians decide to head to nearby states, such as Georgia, North Carolina, or South Carolina. You may dream of going farther afield, such as New Mexico or Nevada. Regardless, it’s time to do your research—both via the internet and in person.

Taxes: What kind of taxes will your new home state levy? No-income-tax states can sound attractive, but remember, every state charges some kind of tax to fund its programs.

A state with no income taxes may have higher-than-average sales taxes or property taxes. Social Security and pension benefits may be taxed in other states. And you’ll also want to research how capital gains are taxed and whether there are inheritance or estate taxes.

Home prices: Research how much real estate will cost in your new home state and whether that’s affordable. If you plan to rent, you’ll want to do similar research. And if you own a home already, you’ll need to determine whether you plan to keep it or sell it before you move.

Cost of living: It’s important to understand whether living expenses in your new state will run less or more than what you pay now.

Some categories to investigate include utilities, groceries, insurance, health care, HOA fees, and transportation costs. A tool like Bankrate’s calculator can help you determine the cost-of-living difference between your current city and the one you are considering.

Lifestyle: Lifestyle isn’t as quantifiable as cost of living, but it’s essential since it helps provide fulfillment. You’ll want to consider factors such as proximity to family and friends, availability of the amenities and activities that you enjoy, neighborhood safety, and access to health care.

Finally, try to visit your desired destination multiple times. Visit each season for at least a week at a time. Try to rent housing similar to your ideal home so that you can assure yourself that it’s sized just right. Get out and try the recreational activities. Meet the community and maybe even start making friends.

By giving yourself the opportunity to visit on several occasions for extended periods, you can decide whether this location really is your home sweet home.

Make an Informed Decision About Relocating

Ideally, your move will improve your quality of life. But if the numbers show that the move will reduce it, you might rethink your desired destination. If you want more money available but your new home state is more expensive, then you may end up squeezed for cash in the long run.

If your new hometown lacks the entertainment venues and amenities that make life fun, you may want to do some soul searching. Could you easily replace these activities with other meaningful ones, or are they non-negotiable?

If you realize this location isn’t the one for you, that’s OK. Sometimes we need to explore multiple locales before we home in on one. Or sometimes, our search leads us to the realization that we’re actually happy living in Florida.

You may want to work with a financial advisor to plan for your move. They can help analyze your current and projected costs, provide tax strategy, update your investment portfolio, work with an attorney on your estate plan updates, and provide objective advice on the insurance policies you may need.

Consider a fee-only, fiduciary financial advisor so that you aren’t sold unnecessary products and instead receive advice that puts your interests first.

Final Thoughts

Planning for a possible relocation requires more work than just winging it and moving. But it can also save you money and heartache in the long run.

Determine your finances in your desired location and how they compare with your current cash flow. Understand the quality of life you can anticipate, and plan for an extended vacation in each of the seasons.

You’ll then be able to make an informed decision about whether you want to leave the state of Florida and where your new home is.

Schedule a complimentary consultation with one of our fee-only financial planners to discuss your personal situation.

This material was prepared by Kaleido Inc. from information derived from sources believed to be accurate. This information should not be construed as investment, tax or legal advice.